President Donald Trump has canceled major tariffs related to Russian energy exports that were established by a law he signed last month. These measures complicated his efforts to lower diesel fuel prices ahead of the US midterm elections.
Trump used an exemption clause from the law, which was strongly supported by the late Senator Lindsey Graham as a means to penalize Russia for its invasion of Ukraine. This law also codified and expanded sanctions targeting Moscow.
In an executive order published late Friday, Trump stated: 'I hereby exempt such sanctions, restrictions, and duties provided for in the Graham Act. I have presented Congress with a certificate stating that granting such an exemption is consistent with the national interests of the United States at this time.'
This directive does not formally introduce tariffs but suspends their application, allowing Trump to implement them at a later date if he chooses.
Previously, this measure gave Trump 30 days to impose 100% tariffs on all products from five of Russia's largest crude oil buyers. Furthermore, it included sanctions against numerous Russian entities and the imposition of 500% tariffs on all Russian energy imports into the US. This one-month period was set to expire on October 18.
These provisions contradict the plan announced last week regarding cooperation with Russian President Vladimir Putin to release the country's diesel fuel onto global markets. Trump aims to reduce US diesel prices, which have been at record levels in recent weeks, just before the November 3 elections.
The cancellation of these tariffs may draw new criticism from members of Congress, including many Republicans who were outraged by his decision regarding Russian diesel fuel. A bipartisan group of senators signed a letter this week demanding that Trump revoke the agreement with Putin and ensure compliance with the Graham Act provisions.
Additionally, the repeal of the law prevents a potential conflict with major buyers of Russian energy products—China, India, and Turkey.
Graham, a Republican from South Carolina and a long-time supporter of Ukraine, drafted this bill before his death in July, and its passage was seen as a tribute to him. Graham repeatedly argued that such sanctions were key to bringing Putin to the negotiating table to end the full-scale invasion of Ukraine, which has been ongoing for five years.